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Former Trustee Jack Schreiber and his wife, Sherry, say in the suit that Webster University failed to provide evidence as to why it needs all $37 million from private donors.
Beset by financial challenges, the university is seeking to reclassify $34 million in endowment funds to meet liquidity obligations for a $30 million loan. Reeling from financial challenges and leadership turnover, Webster University is seeking to lift restrictions on $34.4 million in endowment funds to fulfill the conditions of a loan agreement. But it will first need a court’s permission.
Sumit Verma, chair of the university's Board of Trustees, said that school leaders will look to make expense cuts but not ones that affect students' experiences.
Webster University has informed authorities about the "misappropriated property," which was uncovered in an audit.
In the letter, Webster University Board Chair Sumit Verma said the university planned to ask a court to lift restrictions on endowment funds to use money to fulfill loan requirements.